Jargon Buster - Definition of Business Life Insurance

is a policy that pays out a tax free lump sum of money in the event of the death of the life assured. It is usually used to protect a business loan or mortgage, to substitute the loss of a key employee or to provide shareholder protection for company directors.

Business Life Insurance is usually set up on a 'Life of Another' basis, i.e. the business would be the plan holder of the policy and the life assured would be the employee, director or business partner. This will ensure that the money will be paid out to the business and not the family of the life assured.

As with ordinary life insurance, the sum assured on the policy can be set to increase, remain level or decrease over the term of the policy dependant upon the requirement of the business. Please check our article on Business Life Insurance for further reading.

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.